The British gambling regulator has announced it will take French fantasy football start-up Sorare, backed by SoftBank, to court over allegations of providing unauthorized gambling services. The proceedings against the Paris-based company mark a rare use of the Gambling Commission's regulatory powers.

Sorare, founded in 2018 and most recently valued at $4.3 billion, was financially bolstered in 2021 by a $680 million investment from SoftBank. The company has rapidly expanded through partnerships with leading sports leagues, including a multi-million dollar licensing agreement with the English Premier League.

The British Gambling Commission announced on Thursday that it would charge the company on October 4th at the Birmingham Magistrates' Court for providing gambling services without a license. The charge is based on an investigation initiated in 2021, which examined whether Sorare's fantasy game should be considered gambling and requires a license.

Sorare operates a popular online game where fans create a fictional team of real football players and earn points based on their performance on the field. Players can acquire or win digital football cards, known as non-fungible tokens (NFTs). These unique, blockchain-secured cards can also be traded.

In a statement, Sorare strongly rejected the allegations: "We strongly refute the claim that Sorare falls under British gambling law. The commission has misunderstood our business model and incorrectly determined that gambling laws apply to Sorare.

The court hearing takes place at a time when British gambling laws are unable to keep pace with the rapid development of online gambling. Last year, the British government put forward proposals for stricter regulations in the online gambling sector in a white paper.

Sorare has expanded its reach through numerous partnerships with leagues and athletes worldwide, including the Premier League, La Liga, Serie A, and the Bundesliga. The company also collaborates with the NBA and Major League Baseball in North America.